Construction work on the first sustainable aviation fuel production facility in the UAE begins in Fujairah

Abu Dhabi, 4 November / WAM / MENA Biofuels, owned by the Mercantile & Meritime Group, announced the official start of construction work on the first sustainable aviation fuel production facility in the UAE within the Fujairah Petroleum Industrial Zone, just one year after the initial concept of the project was revealed. The facility will transform used cooking oils and organic waste into internationally approved sustainable aviation fuel, in accordance with the highest quality and emissions standards. The first phase will produce 125 million liters annually, equivalent to about 18% of the general policy targets for sustainable aviation fuel in the UAE by 2030, with the production capacity doubled to 250 million liters annually in the second phase, contributing up to 36% of the total targeted production. The volume of investment in the first phase is estimated at approximately $200 million, while the second phase amounts to an additional $100 million, making the project one of the main pillars of the UAE road map in this field, and an important step towards achieving the UAE’s strategy for climate neutrality 2050. Since the announcement of the project, MENA Biofuels has moved to the actual implementation phase after completing a comprehensive feasibility study that confirmed its economic value. The land adjacent to the MENA Terminals facilities in Fujairah has been leased from the emirate’s government, and The Emirati engineering consulting company “Dynatron” was appointed to manage the project, carry out detailed topographical and hydrological surveys, and select a global technical provider for the technology to convert waste into certified sustainable aviation fuel. Robert Wright, former CEO of the European Biofuels Association, was also contracted as a policy and regulatory advisor. MUC Engineering Company – Fujairah Branch was commissioned to conduct an environmental impact study and provide project permit services. During its participation in ADIPEC 2025, MENA Biofuels signed a strategic memorandum of understanding with the Emirates Petroleum Company (Emarat), in the presence of His Excellency Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, to provide local channels that enhance the project’s commercial implementation path.

The company announced the launch of the first two-stage tender for the engineering, procurement, construction and operation of the new facility in Fujairah, inviting qualified regional and international contractors with experience in renewable fuel projects and major industrial facilities to participate.

The first package of the tender includes the design and implementation of facilities for receiving, storing and distributing raw materials, in addition to facilities for storing sustainable fuel and by-products resulting from the processing process, which provides the basic logistical system for the project, while the second package, scheduled to be launched during the first quarter of 2026, will cover the main processing units for refining sustainable fuel, in addition to the supporting infrastructure, which constitutes a pivotal step towards moving to the full implementation phase of the first facility of its kind in the UAE.

His Excellency Ali Khalifa Al Shamsi, Director General of Emirates Petroleum Company (Emarat), said that building an integrated national system for the production of biofuels requires cooperation between investors and distribution networks, in addition to the use of modern technologies, explaining that the cooperation agreement with MENA Biofuels contributes to turning this vision into a tangible reality by producing increasing quantities of certified sustainable fuels processed locally in Fujairah, which gives airlines a reliable path to reduce their carbon emissions. He added that supporting the development of this path in the Fujairah Petroleum Industries Zone establishes local production capabilities on which the aviation sector in the country depends, and contributes to achieving the goals of the National Road Map for Sustainable Aviation Fuels 2030 and the Climate Neutrality Strategy 2050, while preserving the economic value, job opportunities and expertise within the country, pointing out that the transition from the idea stage to the implementation stage in just twelve months proved that the UAE is serious in its commitment to developing the sustainable fuel sector, and affirmed the commitment of “Emirates” By turning this momentum into tangible results that ensure stable supply and achieve real emissions reductions. In turn, His Excellency Captain Salem Al Afkham, Director of the Fujairah Petroleum Industries Zone, said that the launch of the first sustainable aviation fuel production facility in the UAE from Fujairah constitutes a milestone for both the emirate and the country alike, and embodies a joint commitment to achieving the climate neutrality strategy 2050, and moving forward in the transition towards more sustainable energy sources.

He added that this success represents a new chapter in Fujairah’s journey in the energy sector, and brings it closer to achieving its strategic ambition to diversify the energy mix away from traditional fossil fuels and move towards cleaner, more valuable fuels, and that the project is consistent with the vision of the emirate, and the UAE in general, to enhance economic value locally by combining investment, innovation and industrial capabilities to build an integrated system that enhances economic and environmental sustainability in the long term. He explained that this project and other similar projects confirm that the Fujairah Petroleum Industries Zone continues its development from being one of the three largest global centers for storing and supplying ships with fuel to an integrated energy system that combines manufacturing capabilities and advanced technologies to transform raw materials into more sustainable and higher-value fuels. He pointed out that this transformation strengthens Fujairah’s position as a major contributor to the regional clean fuel scene, and confirms its continued commitment to supporting the transformation process in the UAE energy sector towards a more sustainable future. And diverse. His Excellency Mohammed Saeed Al Raqbani, Chairman of the Board of Directors of MENA Biofuels, said that this facility embodies MENA’s firm commitment to supporting the general policy for sustainable aviation fuels 2030, and also confirms its role in promoting clean energy through investment and strategic partnerships. Ghati Al-Jubouri, CEO of MENA Biofuels, confirmed that, by taking advantage of the advanced infrastructure in the Emirate of Fujairah, and aligning the company’s efforts with the general policy of sustainable aviation fuel in the UAE, it seeks to consolidate its position as a regional leader in the production of clean aviation fuel.

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